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Mileage v Actual Van Costs Calculator

HMRC’s flat mileage rate went up to 55p a mile from 6 April 2026. Enter your miles and what your van or car really costs to run, and we’ll show which claim is bigger — and what it means for your tax bill.

New 55p rate built in2026/27 and 2025/26 rates, side by side.
Lock-in rules checkedTells you when HMRC won’t let you switch.
Working shownEvery figure in your comparison is broken down.
Example figures — replace with your own. Example figures are filled in so you can see how it works — replace them with your own before relying on the result shown.

1. Your vehicle

One vehicle at a time. Pick the tax year you’re claiming for.

The method you used before decides what you can use now.
Scotland has its own Income Tax bands; NI is the same UK-wide.

2. Your miles

From your mileage log, for the whole tax year.

Trips to sites, customers and suppliers. Not commuting to a fixed workplace.Enter 0 or more.
From your odometer. Used to work out your business share of actual costs.Enter 0 or more.
Total miles are less than business miles — we’ll treat the vehicle as 100% business.

3. What it actually cost to run

Whole-vehicle costs for the year, including private use. We work out the business share.

Enter 0 or more.
Enter 0 or more.
Enter 0 or more.
Enter 0 or more.
Leave 0 if you bought it.
Enter 0 or more.
The interest only, not the repayments.
Enter 0 or more.
Breakdown cover, cleaning, etc.
Enter 0 or more.
Business trips only. Claimable with either method.
Enter 0 or more.

4. Buying the vehicle and your profit

Bought it this tax year? Actual costs can include a capital allowance on the price.

Used to estimate the tax difference. Leave 0 to skip.
Enter 0 or more.

Show the maths

How we got your figure

Every step uses the figures you entered above and the rates for the tax year you picked.

The step-by-step working will appear here.

Guide

Mileage rate or actual costs: how to choose

If you’re a sole trader (or in a partnership of individuals), there are two ways to claim for a van, car or motorbike you use for work. You can’t mix them for the same vehicle.

  1. The mileage rate (simplified expenses). Multiply your business miles by HMRC’s flat rate. For cars and vans that’s 55p a mile for the first 10,000 business miles in 2026/27 (45p up to 5 April 2026), then 25p. Motorbikes are 24p. The rate covers fuel, insurance, servicing, repairs, vehicle tax, MOT and the cost of the vehicle itself.
  2. Actual costs. Add up what the vehicle really cost to run, take the business share, and claim capital allowances on the price. Vans usually get 100% in the year you buy them. Cars get 14% a year (18% before April 2026) if CO2 is 50g/km or less, 6% if higher, or 100% if new and electric.

Parking, tolls and congestion charges for business trips aren’t covered by the mileage rate, so you claim those on top either way. Whichever you choose, keep a mileage log.

The mileage rate usually wins for older, cheaper or efficient vehicles doing a lot of business miles. Actual costs can win in the year you buy an expensive van, or if your vehicle is costly to run. But check later years too: once you’ve claimed capital allowances you can never switch that vehicle to the mileage rate. Our guide mileage or actual costs? works through examples.

Things people forget

The rate for the year55p is for 2026/27 only. Your 2025/26 return, due 31 January 2027, still uses 45p.
You’re locked inUse the mileage rate once and you keep it for that vehicle. Claim capital allowances and you can’t switch to it.
Commuting doesn’t countTravel to a fixed workplace you go to every day isn’t a business journey. Trips to different sites usually are.
Parking and tollsNot covered by the mileage rate, so claim them as well. Parking fines never count.
A mileage logDate, journey, reason and miles. Without one, HMRC can refuse the claim.
Selling the vanIf you claimed capital allowances, part of the sale price can be taxed as a balancing charge.

Frequently asked questions

What is the self-employed mileage rate for 2026/27?

For the 2026/27 tax year, sole traders using simplified expenses can claim 55p a mile for the first 10,000 business miles in a car or van, then 25p a mile. Motorcycles are 24p a mile. Before 6 April 2026 the car and van rate was 45p.

Can I claim 55p a mile on my 2025/26 tax return?

No. The 55p rate applies from the 2026/27 tax year, which started on 6 April 2026. For 2025/26, the return due by 31 January 2027, the rate is 45p a mile for the first 10,000 business miles and 25p after that.

Is it better to claim mileage or actual van costs?

It depends on your miles and costs. The mileage rate often gives a bigger claim for older or efficient vans doing lots of business miles. Actual costs can be bigger in the year you buy a van, because you can usually claim its full price through the Annual Investment Allowance. The calculator compares both on your own figures.

Can I switch from actual costs to the mileage rate?

Not for the same vehicle if you have claimed capital allowances on it or put it through as an expense. And once you use the mileage rate for a vehicle, you must keep using it for as long as you use that vehicle in your business. You can choose again when you change vehicle.

Can I claim fuel as well as mileage?

No. The mileage rate already covers fuel, insurance, repairs, servicing, vehicle tax, MOT and the cost of the vehicle. You can still claim parking, tolls and congestion charges for business journeys on top.

Does the 10,000 mile limit apply to each vehicle?

No. If you use the flat rate for more than one car or van in the same business, the higher rate applies to the first 10,000 business miles in total, across all of them. Motorcycles have a single 24p rate with no limit.

Can a limited company director use these rates?

Not as simplified expenses: those are for sole traders and partnerships of individuals. Directors and employees use HMRC’s approved mileage allowance payments instead, which have their own rules.

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Sources and review

Last reviewed: 21 October 2026. The rates and rules on this page were checked against GOV.UK guidance on that date by the HandySums team. We re-check every April, after each Budget and whenever GOV.UK changes. HandySums is independent and not an accountancy firm — see how we check our sums.

Estimate only — not tax advice. This calculator applies the GOV.UK simplified expenses rates and capital allowance rates for the tax year you pick to one vehicle. It assumes you are a sole trader whose accounts run to the tax year, that your profit is your only income, and that the costs you enter are allowable. The lifetime comparison is a rough guide that assumes the same miles and costs each year. It does not cover VAT, electric car charging at home, hybrid rates for accounts that straddle 6 April, employees or limited companies. Your actual bill depends on your full Self Assessment. Verify with HMRC or a qualified accountant. The figures you enter stay in your browser and are not stored.